Hey Seedly Fam, What do you guys think of my insurance plan

Hi anon,

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It's good that you are starting to think about what insurance you will need when you start working. For most fresh grads, with few exceptions, here is what you should be looking at in order of importance:

1. Hospitalization plan your 1stpoint. This covers any hospital bills and associated pre/post hospitalization costs. This would be from an integrated shield plan, with a rider to take care of the deductible/co-insurance. Depending on your budget, you can take a private hospital plan and downgrade later, or just go for Goverment A ward. Most plans are now either covering Private or Government and there are few plans that cover specifically B1 and below. The rider however, is a must in my view.
2. Critical Illness coverage your 3rd point. This provides a sum of money for you to cover your expenses and other out of pocket costs should you fall critically ill and are not able to work. Usually recommended to cover at least 5 years of expenses and an additional sum to cover out of pocket. This is usually via a limited payment life plan, or a term plan, depending on your budget/needs. You'll have to evaluate your coverage requirements based on your personal numbers (expenses, etc).
3. Death coverage your 2nd point. This provides a lump sum of money should something happen to you. Not mandatory if you have no dependents or liabilities. Usually takes the form of a term plan. For the coverage amount, you could use a multiple such as 10 x of your current income, or calculate based on your current liabilities. SAF Aviva group insurance is cheap and will provide some basic cover but there are limitations to a group policy, so I still advocate having a personal policy where possible. DPS would fall under this category as well, and it's also relatively cheap and paid from your OA, so just take it up too. Given that your dependents include both parents and a sibling, you'll need to calculate how much money is needed to support your parents for at least 20 years and your sibling till he/she starts working. That number, might be more than 10 times your annual income, in which case, cover yourself for the bigger number.
4. Personal Accident your last point. For the minor stuff like TCM claims, etc. It's probably around $200/yr for a decent plan. You are right, it is relatively cheap.

Generally, you should not have to spend more than 10% of your income on coverage.

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You can work with an independent financial advisor who can provide multiple options and explain in detail what you will need to know about the types of insurance as well as the options from various insurers before you come to a decision, especially with respect to cost effectiveness as well as the minor differences between the plans.

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You will want to be comfortable to share your financial details with your advisor as that will be important for the advisor to consider your current situation before suggesting suitable solutions.

1) Get Private coverage for hospital

2) Get Accident plan of at least $1.5M coverage for Major Permanent Disabilities

3) Get Life with at least $200K SA coverage. Or $1M Term plan coverage.

Your investment must be able to generate consistent of at least 30% to ensure that you're able to cover yourself.

4) If you have a life and top up with term plan, your CI coverage should be at least $500K as it will be to cheaper to get now.

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If you would like to discuss it in detail, I would love to connect with you!
https://www.instagram.com/thefinancialrab/